Pitney Bowes Inc.
) recently announced that it will be investing to extend its direct
mail presorting service to the Southeast U.S. However, the news
failed to cheer investors as the company's shares dipped nearly
1.6% following the announcement on Jun 11.
Pitney Bowes is now aiming to increase its market share in the
direct mail domain by meeting customer's requirements for reliable
and quality mailing services, which are cost effective as well.
The Duncan centre in South Carolina will be company's fifth
operating unit for direct mails in the U.S. Prior to this, Pitney
Boweshad established an 180,000 square foot modern center in
Northeast U.S. by merging its existing centers in Bensalem and
Langhorne. The company's other operating centers are based in
Corona, CA; Dallas, TX and Milwaukee, WI.
The expanded network will enable the businesses to have broader
access to both direct and digital mails for marketing and other
commercial purposes. The addition of this center will allow Pitney
Bowes to reap the benefits of its expanded coverage across the key
regions of U.S. This will reduce the company's postage and
operational costs and make its services more affordable for
customers as well.
Speedy and secured delivery of mails is crucial for Pitney Bowes
and it uses the United States Postal Service's (USPS) Sectional
Center Facilities (SCF) for the same. The company has to maintain a
Total Quality Management (TQM) process to comply with the high
standards of the USPS partnership. Apart from these, the company's
services come with additional features like Full Service
Intelligent Mail Barcode Tracking and Self Delivery.
The latest move is part of the company's efforts to strengthen
its Enterprise Business Solutions division and tap the immense
potential of the direct mail industry. In the last reported quarter
(first-quarter 2014), the segment's Presort Services revenues
increased 5% year over year to $116.5 million, driven by strong
growth in its First Class mail services.
At present, Pitney Bowes holds a Zacks Rank #2 (Buy). Other
stocks worth a look in same sector include
Advent Software, Inc.
), both of which have the same Zacks Rank as Pitney Bowes.
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